Metro Districts vs. HOAs in Falcon: A Buyer’s Guide

Are you seeing both a metro district and an HOA on a Falcon listing and wondering what that means for your monthly costs? You are not alone. Newer neighborhoods across El Paso County often use both, and the fees and taxes can feel confusing when you are trying to set a budget. In this guide, you will learn how metro districts and HOAs differ, how each shows up on your bottom line, and exactly what to review before you buy in Falcon. Let’s dive in.

Metro districts and HOAs explained

What a metro district does

A metropolitan district is a local government formed under Colorado special district law (Title 32). It exists to finance, build, and operate public infrastructure within a defined area. Boards can issue bonds, levy property taxes called mill levies, charge fees, and own or maintain improvements like roads, parks, trails, streetlights, and sometimes water or sewer systems. Directors are elected by eligible voters within the district; early on, the developer often holds board seats until a transition to resident control occurs.

What an HOA handles

A homeowners association is typically a nonprofit corporation governed by the Colorado Common Interest Ownership Act (CCIOA) and the community’s covenants, conditions and restrictions. HOAs collect assessments, set and enforce community standards, manage common areas, and can levy fines or special assessments if allowed by the documents. HOAs do not levy property taxes. Boards are elected by owners, with control shifting from the developer to homeowners on a set timeline.

How costs hit your budget

Metro district property taxes

Metro districts fund projects with bonds and repay them through property taxes called mill levies, plus fees in some cases. These taxes are listed on your El Paso County property tax bill along with county, school, and other jurisdictions. Early in a development, the debt service mill levy can be significant. Ask for a dollar estimate of the annual metro district taxes for a home at a comparable assessed value, not just the mill levy percentage.

HOA assessments and special fees

HOA dues are paid monthly, quarterly, or annually. They cover operating costs like landscape maintenance for common areas, small amenities, management, and reserves. HOAs can impose special assessments for large projects or shortfalls, according to the governing documents. Unlike metro district taxes, HOA assessments are contractual obligations under the CC&Rs and can be enforced through liens.

Services and amenities you get

Metro districts often fund big-ticket public infrastructure and community-scale amenities: roads and curbs, stormwater systems, parks, trails, pools, and clubhouses. They may also handle street maintenance and lighting. HOAs typically focus on neighborhood standards and smaller, day-to-day upkeep: common area landscaping, playground care, pool staffing if they manage it, and covenant enforcement. In many Falcon communities, both exist together, with intergovernmental agreements or contracts spelling out who maintains what.

Governance and homeowner control

Both metro districts and HOAs usually start under developer control. Transition timelines are set by statute and the governing documents. For metro districts, meetings follow public meeting and records rules similar to other local governments. HOAs follow nonprofit law and CCIOA disclosure requirements. Before you buy, identify when homeowners gain board control in each organization and how elections will work.

Falcon patterns to know

Falcon has seen steady new-build activity, and developers commonly form metro districts to fund infrastructure rather than bearing the full upfront costs. Many neighborhoods also establish an HOA for standards and small-scale maintenance. Your property tax bill will likely include county, schools, and one or more metro district levies. The County Assessor and Treasurer track mill levies and tax histories, while the County’s Special Districts Division keeps service plans and district contacts. Expect both taxes and dues to change over time as developments build out and boards transition.

Your due diligence checklist

Use this list to request and review the right documents before you commit.

• Metro district documents

  • Service plan approved by the county that sets powers, boundaries, allowed mill levies, and maximum indebtedness.
  • Engineer’s report describing planned improvements and costs.
  • Bond official statement if bonds are issued, with debt schedules and tax impact examples.
  • Current budgets, annual reports, and audited financials to see revenues, expenses, and reserves.
  • Mill levy history and the current operating and debt service levies.
  • Intergovernmental agreements that assign maintenance and operations.
  • District maps and plats to confirm boundaries and any overlapping districts.
  • Election and turnover schedule for resident board control.

• HOA documents

  • Full governing documents: CC&Rs, bylaws, rules and regulations.
  • Current budget, assessment amounts, and any planned special assessments.
  • Reserve study if available.
  • Recent meeting minutes and board notices.
  • Insurance coverages for common areas and any management contracts.
  • Rules on rentals, pets, architectural controls, and enforcement.
  • Developer turnover timeline for homeowner control.

• Title and taxes

  • Title commitment showing recorded liens, including any district or HOA liens.
  • Current property tax bill and a two to three year history.
  • Verification of all special district levies tied to the property.

• Quick questions to ask

  • Which metro district or districts cover this lot, and are any overlapping?
  • What is the current total annual district tax on a comparable home, in dollars, and what are the current HOA dues?
  • Who maintains each amenity and how is it funded after construction? Taxes, dues, or user fees?
  • When do homeowners take control of each board?

Red flags and how to read them

• High bonded debt and mill levies

  • If outstanding bonds are large compared to the number of developed lots, expect higher district taxes. Review the bond schedule and ask if more bonding is planned.

• Overlapping districts

  • A single lot can sit in multiple special districts. Layered taxes can add up. Confirm each district’s purpose and levy.

• Vague maintenance agreements

  • If responsibilities are not clearly assigned in intergovernmental agreements, disputes can lead to surprise dues or tax increases.

• Weak HOA reserves

  • Repeated special assessments may signal underfunding. Review the reserve study and minutes for upcoming projects.

• Extended developer control

  • If turnover timelines are unclear or far out, homeowner influence will be limited. Verify transition milestones.

• Litigation or delinquencies

  • Lawsuits or tax delinquencies can point to financial stress. Ask for disclosures and check records.

Quick comparison tips for two homes

Use this simple approach to compare options in Falcon:

1. Add up all recurring costs. Combine the estimated annual property taxes with the district levies and the HOA dues. Use a concrete dollar example for each home at a comparable assessed value.
2. List the amenities and who maintains them. Note whether the district, the HOA, or another entity operates each amenity, and how it is funded.
3. Check governance and timing. Confirm when you can vote for each board and how that might affect future policy, taxes, and dues.
4. Scan for risk factors. Look for high debt per lot, overlapping districts, and upcoming HOA projects that could drive special assessments.
5. Review documents side by side. Compare the district service plans, bond schedules, and HOA budgets. Focus on the next 3 to 5 years of likely costs.

What to expect on your tax bill

In Falcon, it is common to see the county, schools, and one or more metro districts on your tax breakdown. Early in a new community, the debt service mill levy can feel high as bonds are repaid. As more homes are built and assessed, the tax burden may shift. Plan your budget using today’s actual dollar estimates, then ask for a best-case and worst-case scenario if additional phases or bonds are planned.

When these two work well together

You can benefit from strong community amenities funded by the district while the HOA keeps the neighborhood consistent and well maintained. The key is clarity. Clear service plans, solid reserves, and well-defined agreements prevent cost surprises and help protect your investment. When you can see who does what and how it is paid for, you can decide if the value matches the cost.

Ready to buy in Falcon?

If you want a clear picture of taxes, dues, and amenities before you make an offer, you are in the right place. Our team helps you request the right disclosures, read the budgets, and compare homes apples-to-apples so your payment fits your plan. For local guidance and a steady hand from contract to closing, connect with Scott Coddington.

FAQs

What is a metro district in Colorado?

• A metro district is a local government formed under Title 32 that can issue bonds, levy property taxes, and build or maintain public infrastructure within defined boundaries.

How do HOA dues differ from metro district taxes in Falcon?

• HOA dues are private assessments set by CC&Rs to fund common area upkeep and reserves, while metro district taxes are property taxes collected by the county to repay bonds and fund district operations.

Do Falcon neighborhoods often have both a metro district and an HOA?

• Yes. Many newer subdivisions use a metro district for infrastructure and amenities and an HOA for covenant enforcement and small-scale maintenance.

How can I estimate metro district taxes for a specific Falcon home?

• Ask for the current mill levy and a dollar estimate based on a comparable assessed value, and review the County Assessor and Treasurer tax breakdown for recent years.

When do homeowners take control of boards in Falcon communities?

• Control shifts from the developer to homeowners on timelines set by statute and governing documents, so you should review the district service plan and HOA CC&Rs for specific transition dates.